Cost of living up again last month

Consumer prices rose sharply in February

Statistics Canada says consumer prices rose sharply in February compared with the previous month, although the annual inflation rate actually dropped to 1.1 per cent.

Canada's annual inflation had been expected to drop in February because of a sudden jump in gasoline prices in the same month last year, but Statistics Canada reported a smaller decline than expected.

The consumer price index also rose more between January and February than the estimate.

Statistics Canada says the month-over-month increase to CPI was 0.8 percentage points in Februarydue to higher prices for travel tours, hotels, autos and gasoline. Economists had estimated the month-over-month increase would be 0.6 percentage points and that annualized inflation would be below 1.0 per cent, which is at the low end of the central bank's target range. Instead, the rate is now in line with what the Bank of Canada believes is the trend inflation rate after volatility is discounted, although still well below the bank's ideal target of 2.0 per cent. Regionally, inflation was strongest at 2.7 per cent in Prince Edward Island and weakest in British Columbia, where prices declined by 0.3 per cent.

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First, a public sector union goes on strike. Thanks to their in-any-other-circumstance-unlawful monopoly, they get their higher wage whether they've earned it or not. This raises taxes for everybody.

Then, some private sector union notices their paycheques don't go as far. Doesn't really matter where they are; let's say it's the factory that makes Acme Stovetop Noodles. They go on strike demanding higher wages, since the tax increase raised the cost of living, and the factory owner caves. Now the price of the Noodles goes up so the factory can stay in business. Meanwhile, the same thing is happening with the shipping company that gets the Noodles to stores, so the price has to go up even FURTHER not only on the Noodles, but on everything else that company ships to make up for the higher cost of shipping it.

And are they done screwing us? Oh no, because now everything in the supermarket costs more thanks to this unionized butterfly effect, and Joe Six-pack working minimum wage gets annoyed. Rather than speak up against the cause of all this, he demands a higher minimum wage, and gets it. Now businesses across the province have to increase their prices on everything AGAIN, to cover the higher cost of paying their workforce to do the same minimum-wage work.

Then someone working in the public sector walks into the supermarket to buy some Acme Stovetop Noodles. "Hmm," she says, "everything is more expensive. I'd better bring this up at the next union meeting, we may need to go on strike for higher wages soon."

@Sarah
If you exclude the public sector, there aren't that many union jobs left in Canada...and without the influence of the unions, everyone would be working for minimum wage. The privatization of garbage collection in Toronto is a good example...when Rob Ford went private, the union workers making $25/hr were replaced by workers making $12/hr.

Right now the world governments are trying to stimulate inflation to get it as high as possible without killing the economy. They need higher prices and higher incomes to pay their way out of their incredible debt. America is printing $85billion/month, has printed over $3trillion...Canada is doing the same. 100% inflation would reduce their debt by 50%...and unless incomes keep up, the public will see their buying power and standard of living reduced. Those that get screwed are people on fixed incomes like the retirees.

Governments worst fear is deflation where servicing the debt will cost more in real dollars. We were almost there a couple of years ago...

@frank
And what's a HUGE factor in how expensive homes are getting? The sky-high rates charged by unions at every stage of construction, so that 5 guys can drink coffee and watch a sixth guy do the work.

Ok....so the cost of living has gone up. Does that mean we all get raises- or does that notion only apply to over-paid public sector workers and CEOs?

Here's a crazy thought- how about figuring out a way to LOWER the cost of living, so as the price of everything goes down.i.e.- lower the cost of gasoline, heating , electricity. Which in turn will lower the cost of goods and services. Which in turn more people will be able to spend. Which in turn will help stimulate the economy.

@Karl Burgin
Don't say stupid stuff as you have no concept of fiscal and monetary policies that are the drivers here.

First, you don't get raises, especially if you're on a fixed income like retirees and people working neck-down jobs, like IT.

Secondly, lowering the cost of living is called deflation, economic suicide in today's economy...with deflation, governments would be forced to print gazillions of new money, raise taxes to 150% of income, and unemployment would skyrocket. However those on fixed incomes would be the real winners.

Thirdly, energy prices a driven globally...the nations prepared to pay will get the oil.

Lastly, the economy would be devastated if deflation was a factor. Think back to the depression (read deflation)...the price of production exceeded the value of the product, forcing farmers to dump milk because it cost more to produce than they could sell it for. Thousands of factories closed because the products they made sold for less than the cost of making them. It took WWII and huge inflation and government spending to raise the prices to sustainable levels.

@HP
1.>Ok HP2.>You don't have to get your panties in a knot. My comment was a bit of an exaggeration to make a point3.>By your logic, let's raise the cost of everything. Because I'm sure that besides the 1%, that world will be beneficial for the other 99%4.>Can you go a day with making a comment without being insulting....what are you...like 2?

@Karl Burgin
You are truly an idiot...the world governments need to inflate their way out of their debt and preserve and grow the global economies to preserve a decent standard of living for the poorest people and you come up with that crap? The Bank of Canada has devalued the dollar by 13%, interest rates are still zero, money is being printed by the trillions, taxes are still low, yet inflation is still well below the target levels, even in Zimbabwe this year. We are on the brink of economic collapse unless inflation rises to the point of 35 years ago when interest rates were over 20% in Canada...you need to think more, type less. Getting in the last word and trying to be right only makes you look stupid as your arguments descend into absurdity.

Your solution is to go back to the Depression, >30% unemployment, closed factories and stores, children dying in the streets because no money for social assistance, homeless everywhere, etc...but stuff that costs less.

You need to learn to listen and stop making stupid comments to try to look smart. It isn't working...graduate kindergarten, then talk to the grown-ups.

...when you don't know what you're talking about and have no knowledge of the subject, it's best to say nothing. There's no need to expose your ignorance of a subject, be it economics or politics on an international board, but doing so makes you look very childish. Throwing a tantrum and getting into a huff doesn't help your cause.

It's called having an opinion. It is the reason why many of us join and share on these forums. If you can;t seem to handle that, setup your own blog space, make comments to yourself, and then pat yourself on the back.And of the two of us, you're the one throwing the tantrum- spouting insults.

I already said I DIDN'T DISAGREE WITH YOU. But you're the one still trying to pick a fight where there's no issue. I could open up a can-o-worms on that- but you're lucky I'm just not in the mood today.

@Karl Burgin
You're right, as always, however I can't help but notice that many of your opinions evolve into absurdity after your second post in your attempts to be right. So I'm just trying to help you play in the adult sandbox.

Keep in mind that opinions are like sphincters, everyone has one...when expressing an opinion based on something you have no knowledge of, it may make you look silly.

@HP
You never fail HP.......leave it to you to compare leaving a comment the same as an asshole. I suppose that could shed some light on some of your character flaws- seeing how that comparison is the first that comes to mind.

@Karl Burgin
No, what I said is that having an opinion is like having a sphincter, everyone has one, don't you? Leaving a comment is something very different.

Pay attention, class is now in session and you need to read before you respond...something that goes back to my earlier post...when you don't understand, take the time to learn before replying. You may get the wrong message and say something silly.

Sarah is right, we need SERIOUS checks and balances on the power that unions hold; if we leave them to their own devices, they'll ruin our economy just as sure as they ruined Greece.

What we need is a group like Working Canadians, spreading the word and raising awareness about this power imbalance and the unethical ways union bosses abuse their power. Even better, as a registered non-profit your donations are tax-deductible!

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